Business Overview

Only owner-operators need respond to this advertisement, this is a terrific opportunity to net over $130,000 in a very simple operation to run only five staff members and one owner. Adding breakfast to this operation you can increase sales by 30%. Rent is only $3,000 a month with 7 years remaining on the lease Only experienced operators will get an extension thereof.

Financial

  • Asking Price: $140,000
  • Cash Flow: $124,520
  • Gross Revenue: $648,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A
Is Support & Training Included:

Seller willing to train new buyer

Purpose For Selling:

Other business interests

Additional Info

The real estate is leased by the business for $2,900 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell companies. Nonetheless, the true factor and the one they say to you may be 2 completely different things. As an example, they might say "I have too many various obligations" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may simply be justifications to try to hide the reality of changing demographics, increased competition, current reduction in incomes, or an array of other reasons. This is why it is extremely important that you not count completely on a vendor's word, however rather, make use of the seller's response together with your overall due diligence. This will repaint a more realistic picture of the business's existing scenario.

Existing Debts and Future Obligations

If the current business is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Many businesses take out loans with the purpose of covering things like stock, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can mean that profit margins are too small. Many companies come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that need to be met or might lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location bring in brand-new clients? Many times, businesses have repeat clients, which form the core of their day-to-day earnings. Specific aspects such as brand-new competition growing up around the location, roadway construction, and employee turn over can affect repeat consumers and negatively affect future incomes. One important thing to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the higher the chance to construct a returning consumer base. A last thought is the general area demographics. Is the business placed in a largely inhabited city, or is it situated on the outside border of town? How might the regional mean family earnings impact future income prospects?